CCT to buy Asia Square Tower 2 for S$2.09b

(BLK) plans to sell an office building in the heart of Singapore's business district to a local real estate investment trust for 2.15 billion Singapore dollars (US$1.6 billion).

CCT said in a media release on Thursday (Sept 21) it will fund its mega purchase through a combination of a fully-underwritten and renounceable 166 for 1,000 rights issue to raise gross proceeds of approximately S$700 million, external bank borrowings of S$1.12 billion, and proceeds of approximately S$340.1 million from the divestments of a 50-per cent stake in One George Street, Golden Shoe Car Park and Wilkie Edge.

The sale will be BlackRock's fourth property sale in Singapore since 2015.

Ms Lynette Leong, chief executive officer of the manager, said: "Market statistics have shown that Singapore's office market rents have reached a trough; hence, the acquisition will position CCT to benefit from the expected market uptick in Grade A office rents".

A Malaysian-led group past year paid S$2.6 billion for a rare plot in the Marina Bay district, while FWD Group, an insurance company backed by Hong Kong billionaire Richard Li, in May bought a 50 per cent stake in One George Street from CapitaLand Commercial Trust for S$592 million.